Costs of Services Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH),...
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Costs of Services Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.2 hours. On average, HHH completes about 12,000 cleanings per year. The following total costs are associated with the total cleanings: Direct materials Direct labor Variable overhead Fixed overhead $27,600 381,600 12,000 14,400 Required: If required, round your answers to the nearest cent. 1. Calculate the prime cost per cleaning. per cleaning 2. Calculate the conversion cost per cleaning. per cleaning 3. Calculate the total variable cost per cleaning. $ per cleaning 4. Calculate the total service cost per cleaning. per cleaning $ 5. What if rent on the office that Jean and Tom use to run HHH increased by $1,2007 Which of the following statements best describes the effect of this on HHH'S costs? Prime costs would increase Conversion costs per cleaning would increase Total service costs per cleaning would decrease Total variable costs would decrease
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